Neogen Corporation (NEOG)
Payables turnover
| May 31, 2025 | Feb 28, 2025 | Nov 30, 2024 | Aug 31, 2024 | May 31, 2024 | Feb 29, 2024 | Nov 30, 2023 | Aug 31, 2023 | May 31, 2023 | Feb 28, 2023 | Nov 30, 2022 | Aug 31, 2022 | May 31, 2022 | Feb 28, 2022 | Nov 30, 2021 | Aug 31, 2021 | May 31, 2021 | Feb 28, 2021 | Nov 30, 2020 | Aug 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 473,285 | 463,993 | 465,207 | 460,134 | 460,322 | 455,638 | 454,000 | 458,639 | 416,492 | 372,958 | 333,499 | 285,928 | 284,146 | 278,786 | 270,814 | 262,677 | 253,403 | 241,014 | 232,693 | 227,684 |
| Payables | US$ in thousands | 79,605 | 72,240 | 79,574 | 61,464 | 83,061 | 89,748 | 112,184 | 90,210 | 76,669 | 60,494 | 79,251 | 27,002 | 34,614 | 23,548 | 34,222 | 22,414 | 23,900 | 23,257 | 20,697 | 22,537 |
| Payables turnover | 5.95 | 6.42 | 5.85 | 7.49 | 5.54 | 5.08 | 4.05 | 5.08 | 5.43 | 6.17 | 4.21 | 10.59 | 8.21 | 11.84 | 7.91 | 11.72 | 10.60 | 10.36 | 11.24 | 10.10 |
May 31, 2025 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $473,285K ÷ $79,605K
= 5.95
The payables turnover ratio for Neogen Corporation demonstrates notable fluctuations over the period under review. Initially, the ratio increased from 10.10 times as of August 31, 2020, to a peak of 11.72 times in August 2021, indicating that the company was paying its suppliers more frequently during this period. Subsequently, a significant decline is observed, with the ratio dropping sharply to 7.91 times by November 2021, and further decreasing to a low of 4.05 times in November 2023.
The decline in payables turnover suggests a lengthening of the company's average payables period, potentially indicating extended credit terms negotiated with suppliers or a slowdown in the frequency of payments. This trend may reflect shifts in the company's liquidity management, supplier relationships, or operational strategies.
Beginning in late 2023, the ratio shows signs of stabilization and modest recovery, increasing to 7.49 times by August 2024 and then slightly declining to 5.85 times in November 2024. The ratio remains within a range that suggests a cautious but improving payment pattern, possibly aligned with broader financial stability or strategic payment scheduling.
Overall, these fluctuations capture periods of both intensified payment activity and extended credit periods, highlighting dynamic changes in Neogen Corporation’s payables management over time. The observed trend toward lower ratios in recent quarters indicates a potential emphasis on extending payment periods, which could impact working capital and supplier relationships if sustained.
Peer comparison
May 31, 2025